Saturday, September 4, 1999 Published at 06:42 GMT 07:42 UKWorld: Middle EastLeaders hail Mideast dealArafat: Israel and Palestinians to work "hand-in-hand" for peaceIsrael and the Palestinians are preparing to sign a long-awaited agreement reviving the stalled Wye River land-for-security accord.

The deal - which paves the way for permanent peace negotiations - was sealed on Friday after eight months of deadlock.

Palestinian leader Yasser Arafat described the agreement as the "peace of the brave".

But the breakthrough came on Friday when Israeli officials announced that the Palestinians had accepted an Israeli offer to release 350 Palestinians held for anti-Israeli activities. The Palestinians had initially demanded freedom for 400 detainees.

Chief negotiator Gilead Sher said Israel would:

Transfer 7% of the West Bank to self-rule and release 200 Palestinian prisoners within 10 days

Free a second group of 150 Palestinian prisoners on 8 October

Stage two further troop redeployments on 15 November and 20 January, 2000

Mr Sher said the deal also set a one-year deadline for negotiating a final peace treaty, with a preliminary "framework agreement" scheduled for February 2000.

The agreement also provides for the opening of safe passage routes across Israel that will allow Palestinians to travel between the West Bank and Gaza. In addition, it allows for the construction of a
seaport in Gaza.